Wealth adviser support platform Ethic closes round on $6.8m

Ethic, an asset management platform for wealth advisors and institutional investors, has bagged $6.8m in new funding.

Venture firms contributing to the round include ThirdStream Partners, Nyca Partners, Kapor Capital and the Urban Innovation Fund.

New York-headquartered Ethic is an end-to-end solution for wealth advisors and institutional investors to build custom, optimised, tax-efficient equity portfolios. The platform helps to automate the creation of portfolios and track benchmark performance. These portfolios can be specifically designed around principles, values and sustainability goals.

Founded in 2015, the company hopes to combine sustainability with institutional quantitative finance, the company said. Its data science and algorithms analyse millions of data points across multiple sources of the spectrum of key sustainability issues, and its multi-factor optimisation helps to lower tracking error.

Ethic co-founder and CEO Doug Scott said, “We think of ourselves as the operating system for sustainable equities investing, working alongside wealth advisors and institutional investors to empower them to become sustainability leaders.

“The spectrum of environmental, social and governance (ESG) issues is vast, the relationship between ESG and investment performance is complex, and, importantly, every client is unique. Sustainable investing cannot be a one-size-fits-all approach. Through the Ethic platform, we empower you to provide your clients immediate, insightful and custom sustainability portfolio solutions at scale.”

Earlier in the year, FinTech Global reported Nyca Partners was back in the fundraising market, having pulled in up to $129m for its third fund. The vehicle, which comes just 20 months after its predecessor, has a $200m target according to a US SEC filing.

The firm recently led the $32m Series B round of blockchain solution developer Axoni. The company is a blockchain technology developer which builds solutions for investment banks, asset managers and market infrastructure companies.

Copyright © 2018 FinTech Global

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